Posting
Posting is the process of transferring journal entries from the general journal to the individual accounts in the general ledger. It's the step that takes a recorded transaction and distributes it to the correct accounts — so your accounts receivable, cash, revenue, and other ledger accounts all ref
Posting Definition
Posting is the process of transferring journal entries from the general journal to the individual accounts in the general ledger. It's the step that takes a recorded transaction and distributes it to the correct accounts — so your accounts receivable, cash, revenue, and other ledger accounts all reflect the latest activity. In modern accounting software, posting happens automatically.
Posting in Practice — Example
A web design agency invoices a client $5,000 for a completed project. The bookkeeper records a journal entry: debit accounts receivable $5,000, credit revenue $5,000. When this entry is "posted," the accounts receivable ledger increases by $5,000 and the revenue ledger increases by $5,000. Each account now reflects the transaction. In QuickBooks, this happens the moment you create the invoice — no manual posting required.
Why Posting Matters for Your Books
Posting is the bridge between recording a transaction and having it appear in your financial statements. Without posting, transactions would pile up in a journal but never flow into individual accounts — making reports like the balance sheet and income statement incomplete.
Understanding posting helps you trace transactions through your accounting system. If a number on your P&L doesn't look right, you can trace it back from the ledger account to the original journal entry. This audit trail is fundamental to accurate bookkeeping.
While modern software automates posting, the concept still matters for accountants reviewing your books. They'll reference "posted" vs. "unposted" entries, and understanding the distinction helps you communicate clearly with your accountant or bookkeeper.
How Posting Shows Up in QuickBooks
In QuickBooks Online, posting is automatic — every transaction you enter (invoice, bill, expense, journal entry) is immediately posted to the relevant ledger accounts. There's no separate posting step. You can see the result by running the General Ledger report or Transaction Detail by Account report, which shows every posted entry affecting a specific account.
Common Mistakes
FAQ
Q: Do I need to manually post entries in QuickBooks? A: No. QBO automatically posts every transaction when you save it. Manual posting is a concept from manual or legacy accounting systems.
Q: What's the difference between a journal entry and a posted entry? A: A journal entry is the original record of a transaction. Once it's posted (transferred to the ledger accounts), it becomes a posted entry. In QBO, this happens simultaneously — there's no delay.
Related Terms
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Related Terms
Book value is the value of an asset on your balance sheet after subtracting accumulated depreciation or amortization. It represents what the asset is "worth" according to your accounting records — not necessarily what you could sell it for on the open market. Book value is also used to describe the
A liability is a debt or obligation that a business owes to outside parties. Liabilities represent claims against the company's assets and include accounts payable, loans, credit card debt, accrued expenses, and deferred revenue. They appear on the Balance Sheet and are classified as either current
A reimbursement is a payment made to an employee, contractor, or partner to repay them for out-of-pocket business expenses they paid with their own money.
A current liability is a debt or obligation your business expects to pay within one year. Accounts payable, credit card balances, payroll taxes due, and the current portion of loans are all current liabilities.
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